The Dollar has been in a steady decline since topping out in October, however, the looks of that decline could be finally turning.
Bulls are trying to show some signs of life down here to kick off the new year.
Currently holding a long position for a trade looking for higher.
There is a lot of conviction in this dollar trade via UUP and we still believe that once companies start reporting in the next quarter we will see the true nature of this bear market. Hold UUP as a key core foundational position with this ratio.
Again pertaining to the Macro environment, it is a good idea to be on the long dollar side of things.
More importantly is the set up based on the long duration. The Reward Risk on this one is not the best but that's because this will be one of the long term foundational holds.
Keep in tune for our instructions on moving the stop loss to a more favorable position...
Dollar pulled back into that $29.50 zone of support and more importantly, the 10-week ema.
That gave us a "bend don't break" reaction as it ultimately held as support. Now rotation higher, I'm looking at a trim in the $30.40 to $30.50 area.
That lets us move to a B/E stop (or higher) and turn our attention to $30.50+ to see if the UUP can gain momentum.
Do we see a negative divergence in the dollar to the 14 RSI?? Have been listening for weeks that China and the Emerging Markets will rise on the 'weakening Dollar! Are we at a point to see if this will play out?
I think a pullback in the dollar is imminent. It has been a perfect storm in the geopolitical world with inflation, talks of war, tough financial decisions by countries that will likely have a long-lasting effect on their financial futures. Now unless the world really goes to crap and financial systems collapse in the next week, I am unsure how much higher the...
Time to re-gross UUP to a big position. Reasons?
At a key volume support level
Oversold indicators flashing
USD is down as SPY is up, but SPY is at level to take a full short position (see the previous idea)
Here's a US Dollar / FX etf comparison chart. As you can see, currencies responded quickly right after the FOMC interest rate decision & FOMC press conference on 1/26 at 2-2:30pm. Every market responded obviously, and they're all interconnected, equity, bond, commodity, currency & crypto. In my opinion, what's happening underneath the surface between all the...